Posted by: jhamon | September 9, 2009

MysteryHedgie Has More To Say On Gold

MysteryHedgie has more to say on gold…

Barrick’s hedge unwind confessional and subsequent secondary offering have served to restore reality to the hypercharged gold market;  we see profits defended judiciously in this space, as this type of news frequently marks a turning point (see chart of ABX below).  The larger question is, in a  landscape where conviction and hedge fund participation is as  low as it is presently (the survivors have survived, many are sitting on good YTD returns waiting to be monetized), can  marginal news of any sort cause reactions in global stocks and the much derided US$?  With Obama putting the shadow of activist  government back in the spotlight tonight and China, Japan, the DJIA and Oil well below their August highs, the next two days of price movement may set the tone for the rest of 2009…..   

ABX's Alley Oop

ABX Does The Alley Oop

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